09-23-2015, 10:39 PM
Maybe I'm doing the math wrong,
Let's imagine a scenario, if you had put $10k in Sep 2005 (for a perfect 10 year scenario) in EVT at an 8% dividend (flat for easier calculations) you would have gotten: $21.589K, a total rate of return of 115.9% (forget taxes and inflation for the sake of the exercise).
To be honest I don't know how to calculate the same scenario for 10K in a SP500 index at the same 10 years plus dividends reinvested. I tried a bunch of calculators available online and all came back with different numbers
Please note I'm not advocating for CEFs or EVT in particular, I'm just trying to learn different motivations. I'm not even sure yet if I should sell my position in EVT and invest in my basket of stocks.
Let's imagine a scenario, if you had put $10k in Sep 2005 (for a perfect 10 year scenario) in EVT at an 8% dividend (flat for easier calculations) you would have gotten: $21.589K, a total rate of return of 115.9% (forget taxes and inflation for the sake of the exercise).
To be honest I don't know how to calculate the same scenario for 10K in a SP500 index at the same 10 years plus dividends reinvested. I tried a bunch of calculators available online and all came back with different numbers
Please note I'm not advocating for CEFs or EVT in particular, I'm just trying to learn different motivations. I'm not even sure yet if I should sell my position in EVT and invest in my basket of stocks.